World stocks on back foot as China COVID cases rise

World stocks and oil prices fell on Monday as fresh COVID-19 curbs in China fuelled worries over the global economic outlook, reports citing Reuters.

The safe-haven dollar rallied, while the U.S. Treasury yield curve remained deeply inverted in a sign that investors remain alert to global recession risks.

Coronavirus outbreaks across China are a setback to hopes for an easing of strict pandemic restrictions, one factor cited for a 10% slide in oil prices last week and Monday's lacklustre opening in European stocks.

Beijing's most populous district urged residents to stay at home on Monday as the city's COVID case numbers rose, while at least one district in Guangzhou was locked down for five days.

This knocked major European bourses, with markets in Frankfurt and Paris softer, while S&P 500 futures and Nasdaq futures slipped 0.5% and 0.8% respectively.

MSCI's broadest index of world shares fell 0.5%.

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